Coping With the Complexities of 'Free' Trade

They call it ''free'' trade, but the price of failing to properly manage one's imports and exports can be dangerously high. That's especially the case with the looming prospect of the Trans-Pacific Partnership, the sweeping free-trade agreement negotiated among the U.S. and 11 other Pacific Rim countries. TPP has been submitted for ratification by the U.S. Congress, but U.S. importers and exporters should be preparing to cope with the pact's complexities now. On this episode, we get advice from Gary Baracco, director of global product marketing with Amber Road. He discusses how TPP will place new demands on traders for adhering to rules of origin. Companies looking to take advantage of the agreement will need to engage in sophisticated ''tariff engineering,'' he says. Good supplier-relationship management will be more important than ever. It's especially crucial that manufacturers gain visibility into multiple tiers of suppliers, who might otherwise be responsible for serious breaches in their codes of conduct. Finally, Baracco talks about the challenges of sourcing in new markets such as Africa, and the many factors that go into the decision to alter one's sourcing strategy.